USAToday (February 23, 2013 11:53 am) -- Money Watch, a personal finance column that runs every Saturday, features a financial planner from the National Association of Personal Financial Advisors answering reader questions about saving, protecting and growing your money. To submit a question, e-mail USA TODAY personal finance reporter Christine Dugas at: cdugas@usatoday.com.

Q: My family and I suspect that a stockbroker has taken advantage of my 81-year-old stepmother. She obviously has dementia but has avoided seeking a medical diagnosis. The adviser recently introduced her to a lawyer who updated her will and made himself her executor — which her daughter used to be. What should we do, and can we recoup any losses or fraudulent trades by the adviser?

A: Sadly, it has become increasingly common for the elderly to become victims of fraud, exploitation or just plain bad advice. More attention is being paid to the issue thanks to a recent data-gathering initiative of the Consumer Financial Protection Bureau (CFPB). For example, after CFPB requested more information about the problem, the non-profit Investor Protection Trust released a survey about elder exploitation last year. It said that about 20% Americans over the age of 65 have been the victim of a financial swindle.

PROTECT YOURSELF: Preventing elder investment fraud

There are some things you can do. First, you need to find out exactly what is going on with your stepmother's money. If your suspicions are correct and there has been unauthorized or unsuitable trading or product sales made, you will need to file a complaint with the broker-dealer. .

. Brokers often advertise themselves as advisers and say they are working for their clients. But most often they are working in the capacity as a registered representative, or sales agent, for the broker-dealer and do not work for you. When disputes arise, the broker and broker-dealer typically say that the client received required disclosures and approved everything, so the broker and broker-dealer should not be liable for losses. The client typically counters that they were misled.

If you and the broker-dealer can't settle a dispute, you can file a complaint with FINRA, the Financial Industry Regulatory Authority. Most people do not realize that brokerage firms police themselves through this self-regulatory body. Your claim will go through their arbitration system. Investors generally give up the right to sue in court and must resolve issues with brokerage firms through arbitration.

In theory, arbitration is faster, private and decided by people more knowledgeable about investment matters than a typical juror. The critics say that those knowledgeable persons are, in fact, a deck stacked against the consumer and that the private nature of the proceedings allows firms to hide their bad behavior. It is unusual for a brokerage client to get out of being forced into arbitration. You will need a lawyer who specializes in FINRA arbitrations and can consult the Public Investors Arbitration Bar Association (PIABA) to find one.

The state securities division where your stepmother lives probably has good advice. For example, the Wisconsin Department of Financial Institutions' website has instructions for filing a broker/dealer or investment adviser complaint. Also, the SEC.gov website has an investor complaint form, with a brochure about how they handle complaints.

As for the lawyer who named himself executor, you should consult with a good estate-planning attorney in your area about the standards and processes in your state. Try your nearest estate-planning council. For true advisers who will actually work for you as fiduciaries, try the National Association of Personal Financial Advisors (NAPFA).